Majestic Auto Limited has announced an interim dividend declaration for the Financial Year 2025-26, accompanied by detailed communication regarding Tax Deduction at Source (TDS) provisions. The company has issued comprehensive guidelines to shareholders regarding the dividend payment process and applicable tax regulations.

Interim Dividend Declaration Details

The Board of Directors of Majestic Auto Limited, at their meeting held on Wednesday, February 11, 2026, declared an interim dividend with the following specifications:

The dividend payment will be completed within 30 days from the date of declaration, ensuring timely distribution to eligible shareholders.

Tax Deduction at Source (TDS) Guidelines

In accordance with Section 194 of the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividend payments are subject to TDS provisions. The company has outlined specific tax rates and exemption criteria for different categories of shareholders.

Resident Shareholders Tax Provisions

For resident shareholders, TDS will be deducted at 10% under Section 194 of the Income Tax Act, 1961, unless specifically exempted. However, no TDS will be applicable in the following circumstances:

Individual Shareholders Exemptions:

• Total dividend for FY2025-26 does not exceed Rs. 10,000
• Income below taxable limit with Form 15G (up to 60 years) or Form 15H (above 60 years) submission

Institutional Exemptions:

• Insurance companies with IRDAI registration
• Mutual funds under Section 10(23D)
• Alternative Investment Funds (Category I or II)
• New Pension System Trust
• Approved Gratuity and Provident Funds

Non-Resident Shareholders Provisions

Non-resident shareholders face TDS at 20% (plus applicable surcharge and cess) on dividend amounts. However, they can avail benefits under Double Tax Avoidance Agreement (DTAA) by submitting required documentation including Tax Residency Certificate, Form 10F, and self-declarations regarding beneficial ownership.

Documentation Requirements and Deadlines

Shareholders must submit necessary documents by February 22, 2026 to ensure appropriate tax treatment. The company emphasizes that late or incomplete submissions will not be considered for tax benefits.

Required Documentation:

• Valid PAN card (linked with Aadhaar)
• Contact details and bank account information
• Relevant exemption certificates or forms
• Updated specimen signatures for physical shareholders

SEBI Compliance and Electronic Payment Mandate

Following SEBI Master Circular No. HO/38/13/(4)2026-MIRSD-POD/I/4298/2026 dated February 06, 2026, physical shareholders must furnish PAN, contact details, bank account details, and specimen signatures. Effective April 1, 2024, dividend payments will be made only through electronic mode, with no physical warrants issued.

Shareholder Service Information

The company's Registrar and Transfer Agent, M/s. Alankit Assignments Limited, will handle shareholder services and documentation. Shareholders can access online facilities at https://einward.alankit.com for submitting tax exemption forms. The company has established comprehensive procedures to ensure compliance with regulatory requirements while facilitating smooth dividend distribution to eligible shareholders.

Majestic Auto Limited announced the outcome of its Board meeting held on February 11, 2026, where directors approved unaudited financial results for the quarter and nine months ended December 31, 2025, along with declaring a substantial special interim dividend for shareholders.

Board Meeting Decisions

The Board of Directors meeting, which commenced at 1:05 PM and concluded at 1:59 PM on February 11, 2026, approved several key decisions under Regulation 30 and 33 of SEBI Listing Regulations. The company's unaudited standalone and consolidated financial results received statutory auditor's limited review and audit committee approval before board ratification.

Financial Performance Overview

The company reported a strong recovery in its standalone financial performance for Q3FY26. Net profit after tax reached ₹499.02 lakhs, marking a remarkable improvement from the loss of ₹645.26 lakhs recorded in Q3FY24. For the nine-month period ended December 31, 2025, standalone net profit surged to ₹11,718.49 lakhs compared to ₹710.12 lakhs in the corresponding period of the previous year.

Consolidated Results

On a consolidated basis, the company demonstrated even stronger performance with net profit after tax of ₹544.87 lakhs in Q3FY26 against a loss of ₹225.05 lakhs in Q3FY24. Consolidated revenue from operations declined to ₹339.78 lakhs from ₹1,723.87 lakhs in the previous year quarter.

Special Interim Dividend Declaration

The Board approved a special interim dividend of 350%, equivalent to ₹35 per equity share of face value ₹10 each, for the financial year 2025-26. This dividend decision follows the profits realized from the sale of the company's investment in its subsidiary. The record date for dividend eligibility is set for February 17, 2026, with payment scheduled on or before March 13, 2026.

Subsidiary Divestment Impact

A significant development during the period was the complete liquidation of the company's investment in Emirates Technologies Private Limited (ETPL). The company sold its entire holding of 1.60 crore equity shares at ₹122.50 per share, totaling ₹196 crore on September 4, 2025. This transaction resulted in ETPL ceasing to be a subsidiary from that date and contributed substantially to the exceptional items of ₹12,280.00 lakhs in standalone results.

Corporate Governance Updates

The company reappointed M/s S. Tandon & Associates, Chartered Accountants (FRN-006388N) as internal auditors for FY2026-27 at an annual remuneration of ₹80,000 plus traveling expenses and applicable taxes. The audit committee reviewed and the Board approved these results at their meeting held on February 11, 2026.

Business Operations

Majestic Auto Limited continues its focus on real estate and management services as a single operating segment. The company maintains an ongoing agreement with Cyrrus Manufacturing LLP for the sale of plots in Greater Noida for a total consideration of ₹128.50 crore, against which it has received advances of ₹115.25 crore as of December 31, 2025, including ₹5.51 crore received in the current quarter.